2.         It has been decided that rate of refinance earlier announced vide our circular referred to above, in respect of the captioned scheme viz. 6.5% effective from 1st April 2002, shall continue to be applicable for the month of May 2002.  The commercial banks shall, however, ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the Export Finance Scheme, their maximum margin / spread does not exceed 1.5% p.a. 

3.         The financing facilities under Part-B (Export Sales) of the Scheme for financing Locally Manufactured Machinery shall also attract similar mark up rate structure. 

4.         Other instructions on the subject shall remain unchanged. 

            Please acknowledge receipt.